Knowledge Management

SUBMITTED TO :-MR SUPRATIK GHATAK

SUBMITTED BY:- NAVEEN RAMESH YADAV (C-15)

(PRN-15020441150)

Objectives

Understand Business process reengineering and Six Sigma Process adopted by Mahindra and Mahindra

To understand the improvement in the production process of Mahindra and Mahindra after the adoption of Business Process Reengineering and Six Sigma process

To understand the difficulties in the implementing the process so that it gets inculcated in the work culture of organization

Introduction

Mahindra and Mahindra is one of the few companies where the launch of six sigma process is very successful. Almost 99% of the products manufactured by the company are defect free. It is estimated that the company incurs a defect of 3.4 products per million of products manufactured. This has been possible due to company’s adoption of six sigma process.

Also the company is ISO certified. The company got this certification for the tractor division and R&D Division in 1990s

Problem in mid 1990s

In the mid 1990s, Mahindra & Mahindra was facing problems such as inefficiencies, production issues, not getting desired output level and poor quality. The problem occurred at their plants in Igatpuri and Kandivilli in Maharashtra

The reason for the above problem were as follows : Unproductive work force The management was not abreast of how to improve the

quality of products it manufactured

Solution for the problem

The first problem was addressed by adopting the process – Business Process Reengineering

The second problem was addressed by adopting six sigma process

Standard Industrial process used What does Business Process Reengineering mean?- It involves redesigning of the core operational process of organization in order to bolster production and quality, reduce cycle time.- In this process the company follows five major steps:1) Align its goals as per the needs of customer 2) Redesign operational process3) Segregate business into different functional team4) Consider basic organizational & people issues which may

arise any5) Implement the process so that it gets inculclated in the

organizations work culture

Standard Industrial process used

Standard Industrial process used What does Six Sigma Process mean?- Six Sigma means a measure of quality that strives near

zero defects. - The process involves the usage of two six sigma sub

methodologies 1) DMAIC (define, measure, analyse, improve, control) – It is a

system used in case the current system is falling below specification and is failing to meet its output objective.

2) DMADV (define, measure, analyse , design , verify) – It is a system used in case we are developing a new product or process at six sigma quality levels

Challenges faced in implementing Business Process Reengineering :

Labour union Resistance to change in organization policy Fear of downsizing Change in organization culture and employees adaptability to

new culture Several job roles merged into 1 job role Fear of losing jobs Finding critical resource from the organization Integration of the different systems in IT

Challenges faced during implementation of Six Sigma Program:

Execution of projects : It is very important to execute the project in alignment with the organization goals .

Finding the correct talent to be trained: As training is a costly affair to the company. So finding the right employee and retaining the employee for a good duration was a great challenge for the Mahindra and Mahindra.

Finding the right mentors for the job : In 1990s the talent for six sigma process was very scarce in the market and hence having such a mentor and training the talent in the organization was huge task.

Imbibing the six sigma process in the organizations work culture : It took time to implement the process in each and every section of company so that it becomes a part of its work culture

Time frame : The results of Six Sigma program implementation cannot be seen overnight. It takes time to train and conduct the activities of business in line with the process.

Benefits of Business process reengineering :-

- Reduce Cost - Reduced Cycle time - Reduction in management layers- Acceleration in information flow- Eliminates error and rework caused by multiple handoffs- Reduction in fragmentation of work- Establish clear ownership of process- Workers take the responsibility of the output they produced- It helps the management to measure their performance with prompt

feedback- Reduction in employee costs from 12.4% in 1994 to 10.1% in 1996- Value added per employee increased from 0.3 million in 1994 to 0.46

million in 1996 - Reduction in Inventory cost and better ordering distribution across the plant

Benefits of Six Sigma Process:-

Reduction in the defects in the automobile by 75% in Mahindra and Mahindra

Customer satisfaction with respect to usage and durability of company’s products increased

Cost of rework reduced by 32% Reduction in cycle time reduced from 15% to 4% There has been reduction in the waste produced due to

the above followed process Cost of maintenance done to the newly manufactured

cars dropped from 10% to 2%

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